LAW OF PARTNERSHIP (BUSINESS ENTITIES AND NATURE OF PARTNERSHIP)

Which of the following is not the elements of a partnership as defined under section 3(1) Partnership Act 1961?

• with the view of profits

• carrying on

• relation

• capacity

"Persons" in section 3(1) PA1961 refers to the number of partner in ordinary/conventional firms and professional firms can be up to _____

• ordinary firm = 2-20, professional firm = 2-unlimited

• ordinary firm = 2 - 50

  professional firm = 2 - 100

• ordinary firm = 2 - unlimited

  professional firm = 2 - 20

• ordinary firm = unlimited partners

  professional firm = unlimited partners

The word "carrying on" can best be defined as _____.

• The business must be in existence & operating

• There must be a business ideas

• There must be an agreement to set up a business

• All partners must involve in the management of the business

All occupations, trade and profession are considered as partnership

• TRUE

• FALSE

Valid partnership exist even though not all partners take part in the management of the partnership.

• TRUE

• FALSE

Societies like Pertubuhan Kasih Umat Malaysia (PKUM) & Persatuan Cinta Gaza (CGM) can be considered as a partnership.

• TRUE

• FALSE

Is there any existence of partnership in case of joint ownership (tenancy in common) and sharing of gross return?

• YES

• NO

Which of the following circumstances under section 4(c) of Partnership Act 1961 may rebut the existence of partnership in case of sharing of net profits?

• Payment of annuity to a widow of a deceased partner

• payment of debts and interest to the creditor

• there is a partnership agreement between partners

• doing business with the view of profits

Payment of goodwill made to the previous owner of a business by using firm's profits will automatically treat the previous owner as a partner.

• TRUE

• FALSE

Partnership does exist when the business is carried out with different activities which is not performed on behalf of the other partner.

• TRUE

• FALSE